President Barack Obama has proposed a raft of new regulations to limit the size of container ships, calling the issue “an urgent national security issue.”
In a blog post on Monday, the president’s Office of Management and Budget (OMB) announced a new plan to limit ship size regulations, calling for “more than 500 percent increases in the maximum container ship cargo capacity” over the next five years.
The president’s new plan is the latest in a series of measures that the OMB has taken to increase the capacity of U.S. cargo vessels, with an overall goal of reducing the amount of cargo that enters the country by at least 25 percent over the coming decade.
The OMB also proposed requiring all new container ships to have a crew of at least 20 people and limit the ship’s size to no more than 30,000 tons.
The move is expected to be a major win for shipping companies and proponents of shipping containers.
In April, the Obama administration announced plans to dramatically increase the size and capacity of ships and containers, with the goal of lowering the total number of containers moving into the U.N. and other international markets.
But the shipping industry is concerned that these proposed new regulations will have a limited impact on the shipping business and that there will be no net impact on demand.
The U.K. Royal Container Lines (RCL), the world’s largest container shipping company, issued a statement Monday saying that it is “deeply disappointed” by the proposed changes, which would “negatively impact our ability to compete in global markets, with or without a U.A.E. requirement.”
The Royal Container Line said that the new regulations “would be a significant impediment to our ability, and ultimately to the growth of our business.”
The company said that while it is willing to work with the U and other nations to reach a common solution, the new proposal would have “very negative impact on our future.”RCL said it would “continue to monitor developments in the U of A.E., the maritime trade environment, and other relevant areas.”
The OMT’s proposed rules are not the first to target the shipping trade, however.
Last year, the Ombudsperson announced a major change to the federal regulations governing the shipping sector.
Under the proposal, all new containers would have to have crew of 10 or more, while ships would be limited to 30, but with a 50 percent increase in the size limit to no less than 50,000.
The White House also announced plans for a series in 2018 that would increase the cargo capacity of the world economy, with new regulations including a plan to cap the amount that a country can import from other countries and a requirement for more stringent controls on global financial institutions.